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  2. 2. TQM Evolution  Custom-built Articles/Products having considerable control over Quality.  Mass- Produced Products with less control over Quality  Quality control Department in Factories.  TQM-based Production facility – enhancing the Organization through Quality techniques to better achieve organization’s goals-eg. Productivity and Profitability with min.wastage.  ISO Quality Management Systems.
  3. 3. QUALITY IS ….the QUALIFIER!  Doing it right first time and all the time. This boosts Customer satisfaction immensely and increases efficiency of the Business operations.  Clearing the bar (ie. Specification or Standard stipulated) Excellence that is better than a minimum standard.
  4. 4. Quality - Definitions  Quality is excellence that is better than a minimum standard. It is conformance to standards and ‘fitness of purpose’  ISO 9000:2000 definition of quality- It is the degree to which a set of inherent characteristics fulfills requirements.  Quality is ‘ fitness for use ‘ of the product – Joseph Juran.
  5. 5. Quality and customer expectations  Quality is also defined as excellence in the product or service that fulfills or exceeds the expectations of the customer.  There are 9 dimensions of quality that may be found in products that produce customer- satisfaction.  Though quality is an abstract perception,it has a quantitative measure- Q= (P / E ) , where Q=quality, P= performance(as measured by the Mfgr.), and E = expectations( of the customer).
  6. 6. The 9 Dimensions of Quality  Performance  Features  Conformance  -----------------------------  Reliability  Durability  Service  -----------------------------  Response- of Dealer/ Mfgr. to Customer  Aesthetics – of product  Reputation- of Mfgr./Dealer Service Features Performance Cost
  7. 7. Market Changes  MONOPOLIST markets Seller’s market  GLOBAL markets Buyer’s market  Market more competitive Customer-oriented market Demand is defined by Users.  Quality management is a necessity for survival and growth of the organization in a global environment.
  8. 8. TQM six basic Concepts  Management commitment to TQM principles and methods & long term Quality plans for the Organisation  Focus on customers – internal & external  Quality at all levels of the work force.  Continuous improvement of the production/business process.  Treating suppliers as partners  Establish performance measures for the processes.
  9. 9. Effects of poor Quality  Low customer satisfaction  Low productivity, sales & profit  Low morale of workforce  More re-work, material & labour costs  High inspection costs  Delay in shipping  High repair costs  Higher inventory costs  Greater waste of material
  10. 10. Benefits of Quality  Higher customer satisfaction  Reliable products/services  Better efficiency of operations  More productivity & profit  Better morale of work force  Less wastage costs  Less Inspection costs  Improved process  More market share  Spread of happiness & prosperity  Better quality of life for all.
  11. 11. The Deming Philosophy  Create and publish the aims and purposes of the organization  Learn the new philosophy  Understand the purpose of inspection  Stop awarding business based on price alone.  Improve constantly and forever the System  Institute training  Teach and institute leadership
  12. 12. The Deming Philosophy  Drive out fear,create trust,and create a climate for innovation  Optimize the efforts of teams,groups,and staff areas  Eliminate exhortations for the work force  Eliminate numerical quotas for the work force  Eliminate management by objectives  Remove barriers to pride of workmanship  Encourage education and self-improvement for all  Take action to accomplish the transformation.
  13. 13. Quality statements  Vision statement – a short declaration of what the organization hopes to be tomorrow.  Mission statement – a statement of purpose –who we are,who are our customers,what we do , and how we do it.  Quality policy – is a guide for everyone in the organization ,how they should provide products and services to the customers.
  14. 14. Quality Costs  Good Quality – leads to more Productivity  Sales, Profits, and increased Operational efficiency and min. Losses.  Bad Quality - results in less Productivity, Sales , Profits and Efficiency - with Losses amounting to 20% or more of the Sales revenue generated .
  15. 15. Customer satisfaction  Customer is the Boss or ’King’  Customer dictates the market trends and direction  Customer not only has needs to be supplied( basic performance functions)  Also he ‘wants what he wants!’( additional features satisfy him and influence his purchase decision)  Hence the Suppliers and Manufacturers have to closely follow at the heel of the customer.
  16. 16. What is customer satisfaction?  Is it due to Product quality?  Is it due to pricing?  Is it due to good customer service ?  Is it due to company reputation?  Is it something more?
  17. 17. User purchase perceptions- from survey  Performance  Features  Service  Warranty  Price  Reputation ( refer pgs.72 and 73, Besterfield)
  18. 18. Customer satisfaction/ dissatisfaction feedback  Customer feedback has to be continuously sought and monitored - not one-time only!( Pro- active! Complaints are a reactive method of finding out there is a problem)  Customer feedback can be relayed to Mfgr.  Performance comparison with competitors can be known  Customers needs can be identified  Relative priorities of quality can be obtained from the horses’ mouth!  Areas for improvement can be noted.
  19. 19. Customer feedback methods  Comment cards enclosed with warranty card when product is purchased.  Customer survey and questionnaire  Customer visits  Customer focus groups  Quarterly reports  Toll-free phones  e-mail, Internet newsgroups,discussion forums  Employee feedback  Mass customization.
  20. 20. Customers- Handle with care!  Employers don’t pay wages but it is the customer who pays the wages!  So take good care of your customers.  Customer-care centres not just profit-centres!  The entire organization must in effect revolve around the customer – whether the customer is being well served and if he is really pleased,contented and satisfied with the service you have to offer.
  21. 21. Service Quality  (i )Organisation  Identify each market segment  Write down the requirements  Communicate the requirements  Organise processes  Organise physical spaces
  22. 22. Service Quality  (ii) Customer Care  Meet the customer’s expectations  Get the customer’s point of view  Deliver what is promised  Make the customer feel valued  Respond to all complaints  Over-respond to the customer  Provide a clean and comfortable customer reception area.
  23. 23. Service Quality  (iii) Communication  Optimize the trade-off between time and personal attention  Minimize the number of contact points  Provide pleasant,knowledgable and enthusiastic employees  Write documents in customer-friendly language.
  24. 24. Service Quality  (iv) Front-line people  Hire people who like people  Challenge them to develop better methods  Give them the authority to solve problems  Serve them as internal customers  Be sure they are adequately trained  Recognise and reward performance
  25. 25. Service quality  (v)Leadership  Lead by example  Listen to the front-line people  Strive for continuous process improvement (Pgs. 88-93 Besterfield)
  26. 26. References  Total Quality Management - Dale H. Besterfield et al. ,Pearson education LPE  Total Quality Management - R.S.Naagarazan and A.A Arivalagar, New Age International Publishers.